Artificial intelligence is transforming real estate operations, but according to Mor Milo, co-founder and CEO of the commission-free marketplace Relli, the industry is misapplying the technology. Milo contends that AI's true value lies in backend efficiencies, not in replacing the human touch that investors crave.
Milo is unequivocal about AI's strengths. It has revolutionized how his team develops software, creates designs, and processes information, enabling a small company to function like a much larger agency. "In the skill work associated with coding, design, and ideation, I think people should be scared for their jobs," he said. This efficiency allows lean operations to compete at scale, a significant shift for real estate firms that once relied on extensive manpower for such tasks.
However, Milo warns that AI falls short when it comes to interpersonal interactions. He is skeptical of using AI for underwriting judgments and dismisses current AI voice and chat tools designed to engage investors. "In terms of interpersonal skills and physical interactions, we have a long way to go," he noted. He predicts an initial wave of AI companies will overpromise and falter before a second wave develops technology that genuinely enhances personal connections.
The core issue Milo aims to solve is not technological but relational. There is a disconnect between when an investor shows interest in a deal and when a sponsor engages to build rapport. Operators often treat new investors the same as longtime ones, leaving significant investors feeling ignored. Milo likens this to a relationship: you don't go from zero to a hundred on a first meeting. Successful firms, he says, will implement a genuine discovery process, learning about the investor before asking for a check, rather than pitching the deal and immediately pushing for a close.
Milo's insights reveal a fundamental truth: investors want to feel valued. "They want to feel good," he said, emphasizing that investors need to know their money is respected, even if their contribution is small relative to a larger raise. "To that person, it's their life savings." This emotional aspect is often overlooked in an industry focused on returns and macro trends.
His advice to investors is to prioritize fundamentals. Rather than getting caught up in AI's potential to transform real estate, he suggests focusing on the deal and the operator. "Underwrite the deal and the operator, as opposed to only focusing on the macro." This approach underscores the importance of human judgment in investment decisions.
For real estate professionals, Milo's perspective highlights a critical implication: AI can streamline operations, but it cannot replace the trust and rapport that drive investor relationships. As the industry continues to adopt AI, firms that balance technological efficiency with personalized engagement will likely outperform those that rely too heavily on automation. The future belongs to operators who understand that while AI can handle tasks, it's the human element that ultimately closes deals and retains investors.
